Earlier today, the US government announced that the current inflation numbers as of June 10th has raised to a 40 year record high of 8.6%. Although rising inflation has been a hot headline for the last 12 months; the numbers were much worse than public expectation.

These numbers have huge implication not just on Corporate America but also on the average citizen even here in Canada. As we have seen, gas prices have been surging for months on end without any relief. Consumer prices have also surged by 8.6% since 12 months earlier, leading to the cost of food, gas and other crucial household necessities to become almost unaffordable to the masses. Furthermore, with Rate hikes expected to continue, the stock market is not expected to see any relief in the short term and is in a full blow bear market; with a recession expected by many corporate giants.

In my opinion, I dont believe that even these rate hikes will lower current inflation. With a 8.6% inflation rate, I believe that in order to even come close to getting the rate down to 2%, it will take much more than raising hikes for just a few months. With midterms coming up, I am unsure if the American government is willing to take a hit in GDP over inflation numbers, but without drastic and more sustained measures for at least until the remainder of the year; the inflation rate of 2% would likely just remain a pipe dream unless numbers are altered for cosmetic purposes just for the midterm. Like many others, I believe that there is a lot of corruption behind the scenes in terms of economic manipulation and control with the sentiment on many global leaders also at an all time low.

What do you guys think of the current economic situation? Do you place the blame on the leaders or do you think this is just a natural cycle and regular course of the market?